S&P Global Ratings assigned a 'BBB' long-term rating to Bank of India on Tuesday, reflecting the bank's sufficient capitalisation, solid funding, and healthy liquidity. According to reports from The Hindu BusinessLine, the US-based agency noted the likelihood of extraordinary government support if needed for the state-run bank. The stable outlook on the long-term rating reflects S&P's view that the bank will maintain its adequate capital position and solid funding and liquidity over the next two years. As per The Economic Times, S&P expects Bank of India to continue improving its risk management and asset quality over the next two years, with the bank's capitalisation also remaining adequate and sufficient to support credit growth above the industry average.
As reported by The Hindu BusinessLine, S&P highlighted Bank of India's very important role as a public sector bank in promoting financial inclusion through increased access to deposits and lending. The agency emphasized that the bank has very strong links with the government via the latter's majority ownership and control. S&P noted that solid deposits backed by high customer confidence due to government ownership and its ample liquidity underpin the bank's creditworthiness. According to The Economic Times, S&P stated that solid deposits backed by high customer confidence due to government ownership, and its ample liquidity underpin the bank's creditworthiness.
According to The Hindu BusinessLine, S&P acknowledged that profitability and asset quality lagging industry averages are tempering the bank's strengths. The agency expects Bank of India to continue improving its risk management and asset quality over the next two years. As per The Economic Times, S&P noted that profitability and asset quality lagging industry averages are tempering these strengths. The agency added that the bank's capitalisation should also remain adequate and sufficient to support credit growth above the industry average.
As reported by The Hindu BusinessLine, the 'BBB' rating denotes adequate capacity of the institution to meet its financial commitments. S&P assigned both 'BBB' long-term and 'A-2' short-term issuer credit ratings to the bank. The long-term rating is one notch above its assessment of the stand-alone credit profile (SACP) for the bank, according to the agency. According to The Economic Times, the 'BBB' rating is one notch above its assessment of the stand-alone credit profile (SACP) for the bank.
